Help to buy ISA

[[TW]Fox]

Asking around to see if there is anything better that would suit my situation.

It's a no brainer to get one of these once you can in April. But you can only stick 200 quid a month in it so it's not as if its a viable solution on its own anyway.

Put the rest in a 123 current account, provided you have more than £8k or so it's market leading after the fee.

 

[DJMK4]

Yeh seems like a good choice. Although the 123 accounts will cost £5 per month so that's a £60 feep/a or is that just for the cashback stuff?

 

[[TW]Fox]

Yeh seems like a good choice. Although the 123 accounts will cost £5 per month so that's a £60 feep/a or is that just for the cashback stuff?

No, there is a fee - hence you need at least £8-9k in there before it becomes the best account out there for up to £20k, because you need to deduct the fee from the interest earnt and if you have less than £8-9k other accounts will give you a better return.

 

[ash_scotland88]

Sorry if it's been answered but do you only get the 25% bonus if you pay in the £200 a month?
I have 9k I could dump into one, would that give me £2250 (maths correct?) or cause it's not saved over time will I would not eligiable?

Reading the odd post it also seems some don't understand this, you only get the bonus once you've bought the house and closed the account.

 

[VincentHanna]

You can't "dump 9k" in to one, as the maximum amount you can deposit when you open it is £1000 and £200 for every calendar month from then.

That includes the month you open it, so technically you can deposit £1200 initially

 

[ash_scotland88]

You can't "dump 9k" in to one, as the maximum amount you can deposit when you open it is £1000 and £200 for every calendar month from then.

That includes the month you open it, so technically you can deposit £1200 initially

That's dull, so it looks like even if I put (for example) 1k in each month for the 9 months total I would only received the 25% on the £200?

I'm hoping to buy near the end of the year, but looking at house prices and what I earn I don't think I would be able to do so anyway.

 

[Mucky_Pup]

That's dull, so it looks like even if I put (for example) 1k in each month for the 9 months total I would only received the 25% on the £200?

I'm hoping to buy near the end of the year, but looking at house prices and what I earn I don't think I would be able to do so anyway.

You wouldn't be allowed to put £1k in a month, £800 of it would likely be bounced back to you each time you tried.

 

[balky12]

Please explain why it's garbage?

Even for an individual buying a house in the next 12 months, you'll still get an extra £600 at the end of it, all for two minutes work; completing an online form and setting up a standing order.

It works for me. I already have the majority of a deposit saved up, but I'm waiting for another 12 months until buying. I'll use the Help to Buy ISA to compliment my existing monthly saving - so it's a win win situation really.

What? You have the deposit now? But you are going to wait another year to get an extra £600 for the deposit through the scheme? House prices could be a fair bit higher by then?

 

[ash_scotland88]

You wouldn't be allowed to put £1k in a month, £800 of it would likely be bounced back to you each time you tried.

Cool, bit of a shame that.
I know it's suppose to stop people doing what I'm trying to do but I am genuinely buying a house i don't see why it should be for people only starting to save from the account open date?! After all, as said, from my research you only get the 25% once a house is bought and a solicator closes the account on your behalf so in the end a house is still bought what difference does it make?

 

[Skeeter]

It's because its a scheme designed for savers looking to buy in 5 years. There's lots of other Help to Buy schemes designed for people in different situations, like you.

 

[Glaucus]

That may be the case, but that's not the fault of the help to buy ISA. .

A big percentage of it can be blamed on help to buy Isa and other government first time buyer schemes. It allows people to buy something far more than they can reasonably afford. Along with banks still offering far to much as a wage multiplier.

What we need is stagnation of house prices for over a decade.

However as such schemes exist and looks like they always will, no option but to make the most of them and suck it up,

The scheme is extremely good for a lot of people, and if it doesn't suit you, one if the others probably will.

 

[[TW]Fox]

What? You have the deposit now? But you are going to wait another year to get an extra £600 for the deposit through the scheme? House prices could be a fair bit higher by then?

He says he has the 'majority' of the deposit now.

 

[DJMK4]

Just spoken with Halifax again, they are saying there maybe a way around the whole waiting until april thing, I said to them I have 2 stale ISA accounts which have stupidly been used as money transfer accounts without knowing the consequences. Both have £0 balance

I have issues santander to close the ISA, that will be done in a few days,

Lloyds I have a form to fill in and send back or pop in branch, however I phoned halifax and they are saying if I transfer the funds where I am storing my savings at the moment (temp premium bonds) whilst I sort this mess out, I should be able to transfer the premium bonds in to my Lloyds isa? then do a ISA transfer out to transfer the ISA to the halifax ISA buy to help scheme which may save me waiting until April?

There is so much conflicting info

 

[ash_scotland88]

It's because its a scheme designed for savers looking to buy in 5 years. There's lots of other Help to Buy schemes designed for people in different situations, like you.

The only other one I am aware is the deposit contribution which was more unless assigned within a month or two of opening in Scotland.

 

[Skeeter]

The only other one I am aware is the deposit contribution which was more unless assigned within a month or two of opening in Scotland.

• Equity Loan: a loan of 20% of the value of the house interest free for 5 years.
• Shared Ownership: buy a percentage of a house and rent the remaining off a housing agency.
• Mortgage Guarantee: Government backing to lenders to encourage them to provide mortgages with over 90% LTV.
• Help to Buy ISA: 25% bonus on payout of a special ISA when used as a house deposit.

 

[Glaucus]

Mortgagee guarantee one I like, as it's not just for new builds, 5% deposit, 95% mortgagee. Government guarantees the bank, so bank has no chance of loss.

Is the help to buy ISA, new builds or anything?

 

[Diddums]

Cheers for the advice all, I'll be heading to a branch some time this week to get it all sorted

 

[Skeeter]

Mortgagee guarantee one I like, as it's not just for new builds, 5% deposit, 95% mortgagee. Government guarantees the bank, so bank has no chance of loss.

Is the help to buy ISA, new builds or anything?

Pretty much every mortgage with and LTV of more than 95% is Help to Buy Mortgage Guarantee backed. It's a scheme between the government and banks so most people won't even realise they are on one. Its mentioned just once, buried in the small print of our current mortgage offer.

The ISA is for any house below the limits. I assume it can be used in conjunction with other schemes too?

 

[VincentHanna]

Cheers for the advice all, I'll be heading to a branch some time this week to get it all sorted

Ever heard of internet banking?

 

[Diddums]

Ever heard of internet banking?

Can you do an ISA online though? I always thought you needed to go in branch for that, a bit like a mortgage

I'll have a look in a bit, not sure how to do that then as my wife and I have a joint account.